The MV Petro Ranger Arbitration: A Post-Mortem Analysis

By Tan Lay Hong, Wee Beng Geok & Ivy Buche

Abstract

MV Petro Ranger was hijacked by pirates in the South China Sea on 17 April 1998. She was then detained by the Haikou authorities on charges of attempted smuggling. On 28 May 1998, the Haikou authorities released the ship but auctioned off the remaining cargo for US$1.1 million. Petec, the cargo owner, brought arbitration proceedings against Petroships, the ship owner, for breach of contract. Petroships lost the case.

This case explores in depth the ship owner's defence of frustration and excepted peril of arrest or restraint by public authority under Section 4(2)(g), The Carriage of Goods by Sea Act, 1936 (US) as well as the pitfalls of arbitrating in a third country forum.

This case was commissioned by the Maritime and Port Authority of Singapore (MPA).
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Issues: Defence of "frustration" and "excepted peril of arrest or restraint by public authority". Arbitration in a third country forum.

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